American Gaming Affiliation ‘State of the States’ Highlights iGaming
The American Gaming Affiliation (AGA) not too long ago launched its annual “State of the States” report.
An iGaming participant competes in an interactive poker sport. The American Gaming Affiliation’s annual report on the US business business demonstrates the tax advantages states can reap by legalizing on-line on line casino playing. (Picture: On line casino.org)
The in-depth report, which gives a complete overview of the US business on line casino business, revealed that gaming has greater than recovered from the COVID-19 pandemic. It additionally confirmed that for states looking for to considerably generate new tax streams by gaming enlargement, iGaming simply tops sports activities betting.
As of December 31, 2021, 30 states, plus DC, had some type of authorized sports activities betting. Solely six states permitted on-line casinos with interactive slot machines and desk video games.
Cell sports activities betting had 5 instances the variety of authorized jurisdictions in contrast with the variety of iGaming states. However on-line casinos generated 86% of the quantity of gross income that oddsmakers did.
The 31 sport betting markets reported gross gaming income (GGR) of $4.33 billion. The six iGaming states tallied on-line GGR of $3.71 billion.
Contemplating iGaming is just authorized in six states, and sports activities betting is authorized in 30+ states, it signifies how worthwhile the iGaming market is, or might be (particularly in comparison with sports activities betting),” Atlantic Metropolis-based gaming lawyer C.J. Fisher, who co-chairs legislation agency Fox Rothschild’s Gaming Apply Group, instructed On line casino.org.
“In brief, the comparability is compelling, and I believe it helps additional enlargement of iGaming within the US,” Fisher added.
Although life started to return to some sense of regular in 2021, and land-based casinos have been largely open for enterprise, iGaming income continued to flourish. GGR from regulated on-line casinos grew 139% from $1.55 billion in 2020.
iGaming Tax Profit
Not solely does iGaming generate extra gross income than sports activities betting, however states usually tax on-line on line casino income increased than sports activities betting.
New Jersey, for example, is among the few states the place each iGaming and sports activities betting (retail and cellular) are authorized. The state levies an efficient tax price of 9.75% on brick-and-mortar sports activities betting GGR, and 14.25% on cellular. iGaming platforms are required to share 15% of their gross income with the state.
In 2021, New Jersey on-line casinos generated greater than $205.2 million in tax income. Sportsbooks, each retail and on-line, delivered the state lower than half of that at $102.6 million.
Pennsylvania, one other state the place on-line casinos and sports activities betting are authorized, reported iGaming GGR of $1.11 billion in 2021. Sportsbooks stored $340.1 million of gamers’ bets.
Pennsylvania taxes web slot machines at 54% and interactive desk sport income at 16%. The state additionally levies one of many highest sports activities betting taxes. However at 36% it’s nonetheless considerably decrease than on-line slots, which account for the lion’s share of the iGaming income.
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iGaming proves to be a considerable tax generator for states looking for new income. However the many states that solely permit conventional on line casino playing fared simply fantastic final 12 months, as pent-up demand fueled file play throughout the nation.
The AGA reported in its “State of the States” that GGR from land-based casinos, video gaming terminals, iGaming, sports activities betting, and every day fantasy sports activities totaled a file $53.03 billion in 2021. The brand new ceiling simply bested the US business gaming business’s earlier all-time mark of $43.65 billion, set in 2019.
AGA President and CEO Invoice Miller sees the business solely additional rising.
“Though 2021 was a tumultuous 12 months, I’m assured it set a brand new baseline for gaming within the long-term as we offer customers with cutting-edge leisure and anticipate the total restoration of journey, occasions, and leisure,” Miller concluded.
